Q.Explain, with an example, how a Payment Voucher and a Receipt Voucher differ in Tally.

The two voucher types sit on opposite sides of a cash or bank transaction, one recording money going out and the other recording money coming in.

A Payment Voucher is used whenever the business pays out cash or bank funds, such as paying rent of ₹10,000 by cheque, while a Receipt Voucher is used whenever the business receives cash or bank funds, such as receiving ₹15,000 in cash from a debtor. The direction of the fund flow — out of the business for a payment, into the business for a receipt — is what …

A Payment Voucher and a Receipt Voucher are opposite in direction, though both involve the firm's cash or bank ledgers:

• A Payment Voucher is used whenever the business pays out money, whether by cash or by bank/cheque. For example, if the business pays ₹10,000 as rent by cheque, this is entered as a Payment Voucher, debiting the Rent ledger and crediting the Bank ledger.
• A Receipt Voucher is used whenever the business receives money, whether by cash or by bank. For example, if the business receives ₹15,000 in cash from a debtor, Ravi & Co., this is entered as a Receipt Voucher, debiting the Cash ledger and crediting Ravi & Co.'s ledger. …

Students sometimes think the terms 'Payment' and 'Receipt' refer to who initiates the document (e.g. 'a receipt is a document the business ISSUES') rather than the direction of the fund flow FROM THE BUSINESS'S OWN PERSPECTIVE — in Tally, both terms are always from the recording business's own point of view: mone …